Updated March 29 at 12:29am

UNFI to purchase California food distributor for $195M

United Natural Foods Inc. announced Thursday it will acquire Tony’s Fine Foods, a perishable foods distributor specializing in cheeses and deli products and based in West Sacramento, Calif., for approximately $195.3 million. More

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UNFI to purchase California food distributor for $195M

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PROVIDENCE – United Natural Foods Inc. announced Thursday it will acquire Tony’s Fine Foods, a perishable foods distributor specializing in cheeses and deli products and based in West Sacramento, Calif., for approximately $195.3 million.

“Natural protein and specialty perishable products are a very important part of UNFI’s future,” said Steven Spinner, president and CEO of UNFI. “Tony’s Fine Foods will serve as our platform for building out our national perimeter product offering.”

UNFI will finance the purchase with approximately $187.8 million in cash, which will come from a combination of available cash and borrowings, and about 112,000 shares of UNFI’s common stock. Tony’s shareholders will use the proceeds to pay off all of Tony’s existing debt as of the closing.

The acquisition is expected to close late in the fourth quarter of fiscal year 2014, the company said. UNFI’s fiscal fourth quarter is May through July. Under the terms of the deal, Tony’s will operate as a wholly owned subsidiary of United Natural Foods.

Founded in 1934, Tony’s products are sold primarily to retail and specialty grocers, food service customers and other distribution companies throughout the western United States, as well as Alaska and Hawaii. In the fiscal year ended Sept. 30, 2013, Tony’s generated approximately $714 million in net revenue.

United Natural Foods Inc, UNFI, Tony's Fine Foods, Steven Spinner, deli products, cheese, food distributor,

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